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Seif Says Foreign Banks Welcome

Conditions are right for establishment of foreign bank branches and correspondent offices in Iran, governor of the Central Bank of Iran Valiollah Seif, said Saturday.

“Foreign banks are welcome to establish branches and correspondent offices in the country,” Seif said, adding that according to the regulations foreigners can own up to 40% of banks’ shares in the mainland.

“Iranian banks had been excluded from the global network in the past few years and improving banking standards is a time-consuming process,” ISNA quoted him as saying during a meeting with Iranian ambassadors and diplomats.

Seif said the CBI is investing considerable time and effort in reviving relations with foreign banks in the post-sanctions era, adding that “banks are starting cooperation with Iran in fits and starts.”

The United States and Europe lifted sanctions in January under a deal with Iran to limit its nuclear program, but other US sanctions remain, including a ban on all Iran-linked transactions in dollars processed through the US financial system.

European banks, some of which were punished in the past for breaking the US sanctions imposed on Iran, remain skeptical in restoring trade ties and have largely held back despite the lifting of some restrictions in January.

US Secretary of State John Kerry met Thursday with major European bankers to clarify rules for doing business with Iran. But the bankers said after the meeting that they assurances given by the senior US diplomat are vague and that they were not convinced by his statements on the easing of sanctions.